Article · 7 min read

Customer Concentration is Definitely a Risk. But It's Probably OK.

Jason Lemkin · SaaStr (Jason Lemkin) Free Intermediate

A grounded take on the real risk sitting under your question: when one customer is half your revenue, losing them can halve the company. Lemkin is honest that concentration is dangerous but survivable, using examples like Twilio and Palantir's top-heavy revenue. Read it to size the stakes calmly instead of either panicking or ignoring them.

  • Investors get nervous once a single account passes roughly 10 to 20 percent of revenue.
  • Concentration is a risk you manage, not always a reason to walk away from the deal.
  • Ten happy big customers reads very differently from one, so widen the base while the whale funds you.
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The question it answers

  1. How do I set a roadmap when half my revenue comes from one big customer who keeps asking for custom features?

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